India tightens highway project bidding rules to improve road quality, impacting smaller contractors.

India's credit rating agency, ICRA, reports that new, stricter bidding norms for highway projects will reduce fierce competition and encourage serious bidders. The Ministry of Road Transport and Highways introduced a more nuanced APS calculation, increasing penalties for underbidding. This change may temporarily strain smaller contractors but is expected to improve the quality of road construction projects over the medium term.